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FINANCIAL SAVINGS AND OTHER BENEFITS
ATTRIBUTABLE TO THE WORK OF THE
U.S. GENERAL ACCOUNTING OFFICE

FISCAL YEAR 1978

U.S. GENERAL ACCOUNTING OFFICE

JANUARY 1979

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The full effect of Gao's activities on financial sau: ings and improvements in the operations and effectiveness of Government programs and activities cannot be measured. For instance, the increase in governmental effectiveness from actions taken on our recommendirlions cannot be stated in dollars and cents.

When actions taken by the Congress or an agency lead to measurable savings, we record them. Table ! (next page) summarizes the $2.5 billion in collections and other measurable savings attributable to our work which we identified during the year. Of the $2.5 billion listed about $1.700 million represent one-uime savings. while the benefits of the other $800 million will extend into future years as well.

This chapter also describes savings not fully or readily measurable and other benefits from CAO activities.

11.800.000

4.3 1.000

Postponement of installation of computers

Treasury (nonrecurring)................ Cancellation of the prexurement of an IBM

370 sistein for installation at Ship Parts Control Center. Mechanicsburg. Pa

(nonrecurring) ........................ Purchase rather than leas xdditional Jute

inated data processing equipment for inventor control points-Van (non

recurring)............................ Cancellation of request for a large computer

system- Treasur (nouret uning) ........ Sun ings resulung from purchasing ADP

equipmen-Commerce (nonrccurring)...

3.500.000

1.000.000

Collections

211.000

Communications:

Collections attributable to our activities totaleri S47.1 million. Of this. $10.3 million represented our recovery of debts that Government agencies had been unable to collect.

Cancellation of a contract to modif pien

Deliruinent of Defense automated voice network Al'TOON) suite hes-Defense (nonreturring) ...

13.900.000

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DEPARTMENTS
Agency for International Development ........
Agriculture ..
Air Force ....
Army.......
Commerce .....
Defense ........................
Defense Logistics Agency ..............
Discrict of Columbia Government :.
Energy ............................
Environmental Protection Agency ....
General Services Administration .....
Government Printing Office ...........
Health, Education, and Welfare .......
Interior ............................
International Communication Agency ....
Justice.........
Labor .....
National Aeronautics and Space Administration .
Navy (and Marine Corps)..............
Postal Service ....
State ...........
Transportation ..
Treasury ........
Veterans Administration........
Government-wide..........

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$33.211 112.010 282.842 310,074

49.541 410,019 7,539 536

70 73,600 157.731

300 70.917 28,510 14.000 6.700

101 78.109 479.061

525 15.022

8.280 80.800

3.261 268.588 2.191,677

10.353 $2.502.030

3,000
4,500

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FINANCIAL SAVINGS AND OTHER BENEFITS Action taken or planned

Esamated serings seas-Defense (esumated annual sings). 34.000.000 Establishing a sistem for greater visibility and utilization of shipboard supplies-Var (nonrecurring)................... 15.800.000

Action taken or planned

Estimated savings Termination of maritime satellite programs -Commerce (nonrecurring) ............

3.300.000 companies tor use of Department of De. sense cable faciliues-Defense (estimated

annual savings)....................... 100.000 Increased use of FTS by militar installa

Lions-General Services Administration

(estimated annual savings) .............. 300.000 Establishment of more efficient and econ

omical communications services-Defense lesumated Innual savings)..............

123.000

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Community Development and Housing: Reduction of onbase family housing units

Defense (nonrecurring).................

Energy Generation:
Changes made in operation of the Hoover

Powerplant which increased the kilowatthours generated by about 7 percent and displaced the consumption of 379.487 barrels of imported oil-Interior (estimated annual Savings) ...

20.500.000

Contracting Policies and Procedures:

5.983.000

Facilities:

73.600,000

63.000.000

Waste treatment facilities constructed at lower

costs by establishing a value analysis program-Environmental Protection Agency

(nonrecurring)........................ Reduction in appropriations for ircraft maintenance contracts-Air Force (nonre

(urring) ............................. Cancellation of contruct provisions providing

for contractor incenuse lees-- Air Force (nonrecurring)........................

Reduction in funding for the construction of a

new Denver Mini-Treasury (nonrecur.

ring ................................. Deferrment and reduction in funds requested

in fiscal vear 1978 for construction projertsNasy (nonrecurring)....

1.000.000

1.300.000

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157.000.000

415.000

290.000

91.000.000

217.000

Reduction in contract price resulting from de.

fecuve cost or pricing data-Air Force (non

recurring)..... Recovery of development costs in sale of F-16

aircraft to European nations- Air Force

(nonrecurring) ........................ Reduction in contract price resulting from dis

closure of defective contract pricing-- Navy

(nonrecurring) ......... Reduction in contract price resulung from de

fective subcontract pricing dita-Navy

(nonrecurring)........................ Reduction in contract prices resulting from

downward adjustments in overhead billing

rates-Defense (nonrecurring) ........... Reduction in contract price resulting from de

fective cost or pricing data-Navy (nonre.

curring) ............................. Reduction in contract price bused on data sup

plied to contracting officer-Defense Logistics Agency (nonrecurring)........

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Improvements in supply fund operation made

possible--General Services Administration

(nonrecurring)... Change in je counting procedures to preclude

the reclining of prior vars reimbursements to augment current wear sippropriations will reduce funding levels for appropriations

Defense (estimated annual swings)....... Equipment no nereled it some VAS. ik

tivitios was redistributed to others retaling the iuipment thus avoiding new equipmerit purchases NASA (nonner urring)... Implementation of improvements to main.igt mentind budgetary controls out free

Amts-Defense (nonneturting) .......... Savings in sulrich costs for servicing from

renegouating repxamen terms of two (TX11

(rssional loxus- AID (nonreturring) ..... Interest cost savings to the Treasury as a result

of accelerated ckpxnit of loxın collections by the Farmers Home Administracion-Agriculture ($2.330.000 eumater annual

ings: $1.180,000 nonreturring)........... Interest cost savings to Treasur resulting from

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clinition of foreign current strunts maintained nettes banking organizato tions-Army (estimated annual savings) ..

1.010.

99 1,0

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Action taken or planned

Estimated satings Correction of billings to foreign governments

to reflect actual procurement costs for jet engine test stands- Air Force (nonrecurring)............................

75.000 Correction of billings to foreign governments

to reflect full replacement cost of stock fund

articles sold-Air Force (nonrecurring) ... 72.000 Correction of billing to a foreign government

to reflect actual procurement cost-Air Force (nonrecurring)...................

62.000 Identification of reimbursable expenses not re

ported by DOD activities to the Security Assistance Accounting Center for reimbursement from Foreign Military Sales

Defense (nonrecurring)................. 13.000 Health Facilities Construction: Renovation of existing health facilities at less

cost of constructing new facilities-HEN

(nonrecurring) ........................ 23.200.000 Cancellation of unnecessary research animal

breeding facility-HEW' (nonrecurring)... 298.000 Loans, Contributions, and Grants: Termination of grants and reprogrammed grant funds - Justice (nourecurring) ......

800.000 Maintenance

22.000

69.000.000

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Foreign Military Sales
Revision of cost factors for military and

civilizm retirement and lxnefits for ('.S. Coxetiment personnel working on foreign militin tiks will result in additional re

Overi-Delens (estimated annual SIm gy) ................................ Next requirements effective October 1, 1978. will reduce purchases from foreign governinents of unneeded unserviceable equipment as well as reduce related repair and incidental costs-Air Force ($36.400.000 estimated annual savings: 9.800.000 nonre

curring) ............................. Reduction of unneeded equipment buy

backs from foreign governments-Air Force

(nonrecurring)........................ System correction to identify and rebill the cost

of Government-furnished material sold to foreign governments—Air Force (non

rerurring)............................ Revised costing procedures for repaired items

sold to foreign governments-Air Force ($1.068.000 estimated annual savings:

$89.000 nonrecurring).................. Correction of billings to foreign governments

to reflect replacement costs for spare parts support for weapon systems purchased from

the l'.S.-Air Force (nonrecurring) ...... Billing for port handling charges-Army

(nonrecurring) .......... Svstems correction to identify contractor as

sistance costs will allow additional billings to foreign governments-Air Force (nonrerurring)...

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91.000

and increasing classroom irsining time of students-Army (28 million), Vary ($15 million), Air Force ($71 inillion) (estimated annual savings) .......................

11 1.000.000

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